Vroom, Inc. (VRM)
NASDAQ:VRM
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Vroom, Inc.
(NASDAQ:VRM)
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Rating:46Neutral
Price Target:
$7.00
▼(-61.75% Downside)
Action:Reiterated
Date:06/13/26
Overall score reflects an improving cash-flow profile and some post-restructuring stabilization, but it is held down by persistent net losses and high leverage. Technicals are strongly bearish with the stock well below key moving averages, while valuation support is limited due to negative earnings and no dividend.
Positive Factors
Improved cash generation and free cash flow
Vroom has moved from prior multi-year cash burn to sustained positive operating and free cash flow (TTM), indicating improved working-capital discipline and cost control. Durable positive FCF reduces near-term external funding needs and supports reinvestment or deleveraging if maintained.
Negative Factors
Very high financial leverage
Leverage remains extremely high, constraining financial flexibility and increasing sensitivity to interest costs or funding disruptions. High debt relative to equity magnifies downside risk if operating results slip and limits capacity to absorb shocks from used-vehicle market cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation and free cash flow
Vroom has moved from prior multi-year cash burn to sustained positive operating and free cash flow (TTM), indicating improved working-capital discipline and cost control. Durable positive FCF reduces near-term external funding needs and supports reinvestment or deleveraging if maintained.
Read all positive factors
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.60M
Dividend YieldN/A
Average Volume (3M)2.94K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth41.94%
EPS Growth72.15%
CountryUS
Employees704
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-12.76
Shares Outstanding5,207,627
10 Day Avg. Volume2,692
30 Day Avg. Volume2,937
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.89
Price to Sales (P/S)0.92
P/FCF Ratio1.52
Enterprise Value/Market Cap21.86
Enterprise Value/Revenue15.40
Enterprise Value/Gross Profit31.39
Enterprise Value/Ebitda97.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vroom, Inc. Business Overview & Revenue Model
Company Description
Vroom, Inc. operates as an online automotive retail platform, focusing on the sale of pre-owned vehicles throughout the United States. The company offers a comprehensive digital ecosystem that manages all aspects of the car ownership journey, from...
How the Company Makes Money
Vroom’s revenue model has primarily been tied to (1) vehicle-related commerce and (2) finance operations. In its e-commerce used-vehicle business, the company generated revenue by selling vehicles to retail customers (recognizing the sale price of...
Vroom, Inc. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
35
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.36M | 112.27M | 11.61M | 893.20M | 1.95B | 3.18B |
| Gross Profit | 26.18M | 91.13M | 11.61M | 161.95M | 244.79M | 202.10M |
| EBITDA | 8.47M | 51.47M | -43.11M | -171.30M | -392.19M | -334.99M |
| Net Income | -65.76M | -7.96M | -165.12M | -365.54M | -451.91M | -370.91M |
Balance Sheet | ||||||
| Total Assets | 937.82M | 937.38M | 1.07B | 1.48B | 1.62B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 14.48M | 10.38M | 29.34M | 140.07M | 419.51M | 1.13B |
| Total Debt | 774.78M | 779.49M | 752.34M | 1.23B | 985.76M | 1.14B |
| Total Liabilities | 818.19M | 820.77M | 1.10B | 1.35B | 1.14B | 1.45B |
| Stockholders Equity | 98.42M | 116.62M | -30.95M | 122.15M | 475.24M | 915.19M |
Cash Flow | ||||||
| Free Cash Flow | 70.11M | 68.09M | -100.52M | -536.31M | -133.30M | -597.10M |
| Operating Cash Flow | 77.24M | 75.15M | -97.04M | -533.68M | -109.06M | -568.69M |
| Investing Cash Flow | -90.04M | -108.17M | 132.57M | 173.15M | -164.21M | -104.29M |
| Financing Cash Flow | 18.93M | 37.88M | -165.99M | 97.34M | -469.49M | 797.71M |
Vroom, Inc. Technical Analysis
Neutral
18.30
Price Trends
23.58
Negative
25.47
Negative
Market Momentum
-1.10
Negative
45.72
Neutral
67.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Neutral. The current price of 18.3 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 23.58, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRM.
Vroom, Inc. Risk Analysis
Vroom, Inc. disclosed 60 risk factors in its most recent earnings report. Vroom, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vroom, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $302.91M | -6.47 | -61.46% | ― | -4.18% | 43.09% | |
50 Neutral | $435.05M | -10.76 | 48.78% | ― | 79.27% | 98.99% | |
47 Neutral | $17.35M | -0.18 | -17.38% | ― | -2.67% | -1336.84% | |
47 Neutral | $821.83M | -5.39 | -34.78% | 4.97% | 2.61% | -257.25% | |
46 Neutral | $37.60M | -0.57 | -38.32% | ― | 41.94% | 72.15% | |
43 Neutral | $7.99M | -0.08 | -543.84% | ― | ― | 91.89% |
* Consumer Cyclical Sector Average
VRM
Vroom, Inc.
7.22
-22.06
-75.34%
CRMT
America's Car-Mart
2.09
-47.79
-95.81%
CWH
Camping World Holdings
7.98
-10.66
-57.19%
RDNW
RideNow Group
7.85
5.81
283.86%
KXIN
Kaixin Auto Holdings
4.83
-391.17
-98.78%
UXIN
Uxin
2.01
-2.02
-50.12%
Vroom, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Vroom Stockholders Back Board, Auditor and Executive Pay
Positive
Jun 12, 2026
Vroom, Inc. held its Annual Meeting of Stockholders on June 11, 2026, with approximately 82.15 percent of outstanding common stock represented, reflecting strong shareholder participation in corporate governance. Stockholders elected seven directo...
Business Operations and StrategyPrivate Placements and Financing
Vroom Adjusts Warehouse Credit Facilities to Enhance Liquidity
Neutral
Jun 3, 2026
On May 29, 2026, Vroom, through subsidiaries United Auto Credit Corporation and UACC Auto Financing Trust IV, amended its long-standing Warehouse Credit Facility One, extending the commitment termination date from June 2, 2026 to July 2, 2026, whi...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Vroom Reports Q1 2026 Results, Highlights Recapitalization Progress
Negative
May 15, 2026
Vroom, Inc. reported its first-quarter 2026 results on May 14, 2026, highlighting stockholders’ equity of $98.4 million, tangible book value of $86.5 million, and total available liquidity of $56.4 million as of March 31, 2026. The company p...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Vroom Reports Reduced 2025 Losses and Liquidity Position
Positive
Mar 26, 2026
On March 26, 2026, Vroom reported its fourth-quarter and full-year 2025 results, highlighting stockholders’ equity of $116.6 million and tangible book value of $104.2 million as of December 31, 2025. The company also reported consolidated to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.